UBS acquired Credit Suisse
The leadership of the National Bank of Switzerland (Schweizerische Nationalbank) has officially announced that the UBS credit institution has acquired Credit Suisse. We are talking about the two largest and oldest financial structures in the country.
“Thanks to the takeover of Credit Suisse by UBS, a solution has been found that will ensure financial stability and protect the Swiss economy in this exceptional situation,” the Swiss regulator said in a statement. This message leads Reuters.
The Swiss Central Bank will provide ₣100 billion ($108 billion) of liquidity to Credit Suisse. UBS will receive another ₣9 billion from the regulator. This should cover potential losses that the bank may incur as part of the transaction.
“The Federal Council welcomes the acquisition of UBS Credit Suisse. The deal is of great importance not only for Switzerland, but also for the international financial center in terms of restoring confidence,” Swiss President Alain Berset said.
Officially, the amount of the transaction has not yet been reported. However, according to the Financial Times, speech goes about $2 billion.
Over the past few years, Credit Suisse, one of the oldest Swiss banks, has been in serious trouble. This credit structure ended 2022 with a loss of $7.9 billion, showing the worst result since 2008. Over the past three months, clients withdrew ₣111 billion from Credit Suisse. The situation was aggravated sudden bankruptcy Silicon Valley Bank, which caused strong investor anxiety in the global market.